Stolt Offshore S.A. Lowers 2002 Guidances

Thursday, September 26, 2002
Stolt Offshore S.A. announced that it expects full year 2002 earnings to be below previous guidance due to three factors: operational problems on projects, a timing delay on a major pipelay contract in Nigeria and a continuing weak market in the Gulf of Mexico. The company now anticipates the year-end results to be about breakeven. In addition, the Company announced that Bernard Vossier has requested to retire from his position as CEO effective immediately. Vossier will continue to serve as a member of the Board. The Board of Directors has commenced a search for a new CEO and appointed on an interim basis as CEO Niels G. Stolt-Nielsen, a member of the Board since 1999 and currently also CEO of Stolt Offshore's parent company, Stolt-Nielsen S.A. Operational problems have been experienced mainly on three projects. After completing the detailed engineering study for the installation and tie-in of steel catenary risers in a water depth of 1,245 meters next year on the Shell Bonga project in Nigeria, we are now forecasting higher than expected fabrication and installation costs. The company has also seen cost over-runs on the Burullus Scarab and Saffron project in Egypt. These are due to changes in project planning, materials supplied by the customer that were both late and defective and also difficulties with a nominated sub-contractor requiring additional engineering, management and supervision costs. On the Conoco CMS project in the North Sea we have experienced pipeline burial problems. A delay has occurred on the Offshore Gas Gathering System (OGGS) pipelay project for Shell in Nigeria, due to late delivery of key items by a third party outside of Stolt Offshore's control, which has a negative impact on key asset utilization. Earnings for this project previously expected in 2002 will now fall into the first half of 2003. The market in both the deep and shallow waters of the Gulf of Mexico has been much weaker than expected this year. The chance of an improvement in Q4 is now thought to be unlikely. In light of the poor results for Stolt Offshore, the Company's Board of Directors agreed to accept an offer from Stolt-Nielsen S.A., the company's parent, to exchange $40 million principal amount of outstanding debt owed by the Company to Stolt-Nielsen S.A. for 9.4 million Common shares at an exchange price of $4.25 per share. On completion of this transaction the total number of Common share equivalents outstanding will be 93.3 million.
Maritime Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

NZ's Lyttelton Port Recommends Offer, to Pay Special Dividend

The board of New Zealand's  Lyttelton Port Co. Ltd recommended minority shareholders accept an offer of NZ$3.95 a share offer from the commercial arm of the Christchurch city council.

NYK Opens New Planning Center in Kumamoto

On September 1, 2014, NYK and Kozo Keikaku Engineering Inc. established a stowage planning center for container shipping at the Kumamoto office of Kozo Keikaku Engineering Inc.

Indian Investigators Drop Case Against Billionaire Birla

India's Central Bureau of Investigation (CBI) has closed a coal scam case against billionaire Kumar Mangalam Birla and a former top bureaucrat that emerged in

Finance

NZ's Lyttelton Port Recommends Offer, to Pay Special Dividend

The board of New Zealand's  Lyttelton Port Co. Ltd recommended minority shareholders accept an offer of NZ$3.95 a share offer from the commercial arm of the Christchurch city council.

A Boost for UK Offshore Drilling? DW Monday Muses

Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report

MHI, IHI & DBJ Join Forces On Investments

Mitsubishi Heavy Industries, Ltd. (MHI), IHI Corporation and the Development Bank of Japan Inc. (DBJ) concluded a three-way formal agreement today on their respective

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1239 sec (8 req/sec)